Tax

 An appellate bench of High Court of Sindh comprising Justice Aqeel Ahmed Abbassi and Justice Abdul Malik Gaddi declared super tax as intra vires of the Constitution of Pakistan 1973 while dismissing more than 200 constitutional petitions and equal number of suits. Super tax was imposed on income of banking companies and persons having income…

Persons not appearing on Active Taxpayers List (ATL) are liable to pay advance income tax at the time of paying educational fee. Officials at Federal Board of Revenue (FBR) said that through Finance Act, 2020 the condition of paying advance tax under Section 236I of Income Tax Ordinance, 2001 on educational fee had been abolished…

Pakistan Stock Exchange (PSX) is required to deduct/collect a reduced rate of three percent income tax on payment to non-residents. Officials of Federal Board of Revenue (FBR) said that amendment has been made through Finance Act, 2020 and various service providers are required to collect three percent income tax on payment to non residents. These…

Federal Board of Revenue (FBR) will get CNIC details of unregistered persons making purchases above Rs100,000 through monthly sales tax return for July 2020 to be filed by registered persons in August 2020. The registered persons are required to provide details of all those unregistered persons who made purchases above Rs100,000. The information of CNIC of…

Following are the tax slabs for salaried persons to be applicable during tax year 2021 (2020/2021). S. No. Taxable income Rate of tax (1) (2) (3) 1. Where taxable income does not exceed Rs. 600,000 0% 2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 5% of the amount exceeding Rs.…

The Federal Board of Revenue (FBR) to ask banks to provide information of all persons receiving profit on debt from July 01, 2020. To implement this an amendment has been introduced through Finance Bill 2020. According to explanation of the Finance Bill 2020 by EY Ford Rhodes Chartered Accountants, the Finance Act, 2013, introduced a…

 Economic Coordination Committee of the Cabinet (ECC) has decided to abolish regulatory duty on smuggling prone items. In a meeting held on Thursday chaired by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh also decided in favour of removal/reduction of regulatory duty on the smuggling prone items, including fabric, sanitary ware,…

Senate of Pakistan has recommended that tax amnesty i.e. immunity from explaining source of income for builders and developers should be extended up to June 30, 2021. The investment in the construction sector have been granted immunity from Section 111 of Income Tax Ordinance, 2001 and investor as an individual is required to open a new…

Federal Board of Revenue (FBR) has exempted various properties from attachment for recovery from tax defaulters. The FBR issued SRO 353(I)/2020 through which the tax officials have been restrained from attaching certain movable properties of a defaulter for recovery of due taxes. According to the notification, the FBR officials may not attach assets for recovery,…

The Supreme Court held that income tax liability is to be determined on the basis of taxable income that is derived or legally presumed to have been derived in a whole tax year and not any part of it. The judgment authored by Justice Faisal Arab, a member of three-judge bench said: “Even for the…